Keppel

Keppel: OCBC emphasized that management believes that oil jitters has not altered the sound fundamentals of the industry. With regards to capex cuts by international oil companies, management thinks that IOCs will at some point need to spend to replenish reserves, while drilling contractors will have to replace their fleet with new, safer technologically superior rigs. However, oil prices have taken another tumble since then, and order flows are likely to slow even further. OCBC revises order win to $5b (FY14) and $4.5b (FY15) That said, OCBC underscores Keppel’s diversified exposure in property and infrastructure. OCBC maintains Buy on Keppel with TP at $9.89